said: “Given the delayed timing and still modest scope of these measures, growth may remain subdued in the near term amid continued domestic political uncertainty and a global slowdown."
It added, “Unanticipated domestic political turmoil, a further worsening in global growth and financial conditions, or a surge in food and other commodity prices could all affect the pace and timing of the recovery.”
Standard & Poor’s had last month cautioned that the country faces a one in three likelihood of rating downgrade for India over the coming 24 months.
According to OECD, the recovery of the world economy next year will be “hesitant and uneven” due to the impact of Europe’s debt crisis on other economies including the US and developing countries.
The OECD expressed worries about the US ‘fiscal cliff’ stating, “If the fiscal cliff is not avoided, a large negative shock could bring the US and the global economy into recession.”